Moldova has introduced a moratorium on the repayment of debts of farmers affected by the severe drought this year
This is stipulated by amendments to the Law on some measures to support farmers in connection with the drought of 2024, passed by the Parliament in the second reading. MP Viorel Barda from the faction of the ruling Action and Solidarity (PAS) party, drafted the legislative initiative, noting that the law on measures to support farmers, previously approved by Parliament, did not have the expected effect, consequently it necessitated a revision. According to the approved document, a moratorium on payment of outstanding debts, including penalties and fines, owed by farmers to their creditors will be imposed from the moment the law comes into force until October 31, 2025. The document also revises the eligibility criteria for debtor farmers. Farmers whose crops have been damaged by at least 40% of their crops on at least 40% of their land will be eligible for these protective measures. A new criterion has been introduced whereby farmers managing 1800 hectares or less will also be eligible for these measures. It is stipulated that debtor farmers are not in insolvency proceedings confirmed by an insolvency court judgment. The draft law also revises the deadline by which farmers will have to notify creditors of a case of crop damage and invoke a suspension of liability to pay outstanding debts. This notification will be possible until February 28, 2025. At the same time, the enforcement acts and any possible enforcement acts or other measures for the collection of claims, including the application for the initiation of insolvency proceedings for unpaid debts arising from credit contracts and leasing contracts concluded before September 1, 2024 with banks, non-bank credit institutions or savings and loan associations, as well as from contracts for the sale or supply of phytosanitary products and seeds used in the cultivation of crops, will be suspended. It is agreed that debts and payments suspended under this law shall not be recorded in the credit bureaus as overdue debts during the period of this law and shall be subject to review with creditors. // 27.12.2024 - InfoMarket.
